Ex-city councilman Matula gets probation for insurance fraud case

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Tony Matula's defense attorney said his client had two accidents that were his fault and was concerned what would happen with his insurance company if he filed a claim for a third

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Tony Matula said he had let down his family, friends and constituents by falsely reporting it was a hit-run accident.

Once Matual admitted his wrongdoing, he resigned his seat on city council, his defense attorney said.

Judge Samuel A. Kline said he did not believe a prison sentence would be appropriate in Matula's case.

Former Lebanon city councilman Tony Matula was sentenced to probation and house arrest Wednesday for falsifying a traffic accident report.

The 59-year-old Matula of 110 S. Ninth St. was sentenced by Judge Samuel A. Kline to two years probation and fined $700 for insurance fraud and false reports to police. He was placed on house arrest for two months. Matula entered an open plea Jan. 18, meaning it was up to the judge to determine a sentence.

Defense attorney Jon Arnold said that Matula reported the incident as a hit and run because he was concerned what his insurance company would do if he filed another claim. The defense attorney said the former city councilman had two prior claims for accidents that were his fault.

In one instance, his car was parked in a loading zone when a snow plow struck it. His insurance company said that incident was his fault, Arnold said. Another time, he opened his car door on South Ninth Street in front of his barber shop and a truck hit the door.

This would have been his third at-fault accident, the defense attorney said.

Once Matula admitted his wrongdoing, he resigned his seat on city council, Arnold said.

Nichole Eisenhart, first assistant district attorney, said Matula has prior driving under the influence violations but Arnold said alcohol was not involved in this incident.

Kline said there is a side to Matula that many people may not know. Years ago, a woman stalked the former city councilman, the judge said. She was charged and before Kline sentenced her, Matula wrote a letter to him begging that she get help instead of being sent to prison.

“He has an incredible compassion,” Kline said.

The judge said he realizes some people will criticize his sentence but he did not think sentencing Matula to prison would be appropriate.

Matula was sentenced in connection with an accident on South Ninth Street in front of his home on June 28 last year.

Based on evidence at the scene, including damage to his car and a utility pole across the street, investigators questioned Matula’s initial report.

The following day, June 29, Matula gave police a different story, telling them he had been contacted by a friend who claimed her husband had fallen asleep while driving and struck his car.

Matula, however, told police he did not want to provide that person’s identity and the investigation remained open, according to the criminal complaint.

Later the same day, Matula contacted police a third time to tell them that he had learned a friend of his had moved the car without his knowledge and struck the utility pole across the street.

Police interviewed the friend who initially corroborated Matula’s version of events, but then quickly recanted, telling investigators that Matula had asked her to lie to police by accepting responsibility for the car’s damage, police said.

The woman, who was not identified in the county Detective Bureau's report and is not facing charges, told police she had also provided the false version of events to Matula’s insurance company.

When presented with this information by police, Matula acknowledge he had been at the wheel when the car struck the utility pole across the street from his home and moved it the next morning, prior to making his first hit-and-run report, according to the criminal complaint.

Matula also admitted to making a fraudulent hit-and-run claim to his insurance company, which paid $5,600 to a body shop for repairs.

While in office, Matula led a campaign that raised more than $50,000 to restore the city's K-9 unit.

He had been a member of council since 2010 and was in the middle of his second four-year term. He has two previous convictions for driving under the influence. One in 1988 and the other in 2000.